Tuesday, July 13, 2010

Whether you buy the Marxist analysis, much less the Marxist prescriptions, you can't deny the centrality of a point Harvey only makes in passing, which is that there's no way we can get out of this crisis the way we did the last time (that is, in the 1970s/80s), namely by re-disciplining labor to rein in costs and supporting aggregate demand by issuing lots of cheap credit. Those byways have been exhausted, and so how (or if) we can get out of this crisis remains radically unknown.